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U.S. consumer watchdog to query tech giants over financial data -sources -Breaking

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© Reuters. FILE PHOTO – The logos for Amazon, Apple and Facebook in combination photo/File Photos

By Katanga Johnson and Michelle Price

WASHINGTON, (Reuters) – The U.S. Consumer Watchdog will query technology giants like Google, Amazon, and Amazon this week in a wider effort to increase financial sector competition and consumer protections.

According to people speaking under anonymity, the Consumer Financial Protection Bureau (CFPB), will send the firms a 55-page inquiry about their use of consumer data.

Sources said, “The regulator’s questions would pay particular attention to what it firms are collecting and how they’re doing it.”

The CFPB refused to comment. Facebook Inc (NASDAQ :)., Amazon Inc., and Alphabet, (NASDAQ) Inc., were not directly regulated through the CFPB. A request for comment was not received immediately.

Following Rohit Chopra’s Senate confirmation last month, there will be a request for information. Former Democratic Federal Trade Commission commissioner, he earned a reputation as an advocate for consumers and was often harsh on big tech.

The top priorities of Democrats include increasing competition in consumer finance by making financial companies give customers more control over financial data. This is known as open banking.

For example, banks or other financial institutions should be required to permit consumers to access data regarding account balances and transactions, and to share that information with third parties. This could help consumers switch providers more easily.

Chopra plans to continue with an open banking rule, which was originally proposed by the agency during the Trump presidency. It is anticipated that Chopra will do so in the coming months.

According to the source, confidential answers from the companies could help inform future rules and open banking.

Source added that the move of the agency “is a clear sign that this broader assortment of companies are seen undertaking activities and collecting consumer financial data that might be subject future, open banking regulations.”

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